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Saudi Sets Requirements for Establishment of Duty-Free Markets in Customs Ports

Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)
Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)
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Saudi Sets Requirements for Establishment of Duty-Free Markets in Customs Ports

Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)
Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)

The Zakat, Tax and Customs Authority (ZATCA) set the customs measures and requirements for the establishment of duty-free markets, when necessary, at air, sea and land ports, pursuant to the GCC Unified Customs Law.

In a statement, ZATCA said these requirements are linked to the operation and licensing of duty-free markets.

These rules and requirements followed the Cabinet’s decision, which will contribute to supporting supply chains and improving the logistics services provided for duty-free markets. It will do so by providing a wide range of goods and products for shopping while traveling.

Moreover, duty-free markets will allow additional selling channels for local companies. This will support and contribute to the promotion of national products by displaying them in the sales halls.

According to ZATCA, duty-free markets are currently found in the departure terminals of several airports, such as King Abdulaziz International Airport, King Fahd International Airport, and Prince Mohammad bin Abdulaziz International Airport in Madinah.

The authority added that it seeks to expand the presence of duty-free markets as needed in the air, sea, and land ports. It said it would do so in coordination with the legal authorities in customs ports.

Duty-free markets are defined as retail outlets that allow travelers to purchase goods and products that are permitted to be traded in the Kingdom, which are subject to exemption from customs duties or taxes, in accordance with the provisions of the relevant regulations, as stipulated in Article 78 of the Unified Customs Law and Paragraph 1 of Article 12 of the Duty-free Markets Rules System.

On the other hand, ZATCA added that tax exemptions differ from one country to another, based on the location of the duty-free market (arrival or departure terminals).

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.